REPORT DIGEST

NORTHERN ILLINOIS UNIVERSITY

FINANCIAL AND COMPLIANCE AUDIT

(In accordance with the Federal Single Audit Act and OMB Circular A-133)

For the Year Ended:
June 30, 2002

Summary of Findings:

Total this audit 3
Total last audit 4
Repeated from last audit 1

Release Date:
February 25, 2003

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State of Illinois
Office of the Auditor General

WILLIAM G. HOLLAND

AUDITOR GENERAL

To obtain a copy of the Report contact:
Office of the Auditor General
Attn: Records Manager
Iles Park Plaza
740 E. Ash Street
Springfield, IL 62703
(217)782-6046 or TDD (217) 524-4646
This Report Digest is also available on
the worldwide web at
http://www.state.il.us/auditor

  

 

 

SYNOPSIS

 
  • The University did not have adequate controls over the processing of refunds and repayments applicable to both undergraduate and graduate federal grant and loan programs.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

{Expenditures and Activity Measures are summarized on the next page.}

NORTHERN ILLINOIS UNIVERSITY
FINANCIAL AND COMPLIANCE AUDIT
For The Year Ended June 30, 2002 (in Thousands)
FINANCIAL OPERATIONS (CURRENT FUNDS)

FY 2002

FY 2001
REVENUES

Appropriations
Student tuition and fees, net
Grants, contracts, and gifts
Sales and services of educational departments
Auxiliary enterprises
Other

TOTAL

EXPENSES

Instruction
Research
Public service
Academic support
Student services
Operation of plant
Institutional support
Depreciation
Staff benefits
Student aid
Auxiliary enterprises
Other

TOTAL

 

$172,349
61,900
36,148
19,249
74,781
16,008

$380,435

 

$110,831
12,239
20,572
23,689
11,561
22,960
20,180
26,270
44,367
10,354
68,544
7,692

$379,259

 

$148,641
77,523
30,868
9,385
68,510
5,131

$340,058

 

$107,557
11,355
13,401
26,918
11,597
18,215
23,319
0
40,729
22,458
69,711
2,901

$348,161
ACCOUNT BALANCES (ALL FUNDS)

FY 2002

FY 2001
Cash and cash equivalents
Investments and marketable securities
Capital assets, net
Accrued compensated absences
Revenue bonds payable
Leases payable
Net Assets:
Invested in capital assets, net of related debt
Restricted – Nonexpendable
Restricted – Expendable
Unrestricted

$33,855
$72,936
$316,791
$26,106
$122,933
$19,673

$160,588
$18,296
$13,527
$32,988

$14,951
$57,458
$542,575
$26,900
$115,475
$20,996

$395,276
$1,586
$0
$(19,894)
SUPPLEMENTARY INFORMATION (In whole numbers)

FY 2002

FY 2001
Employment Statistics

Appropriated funds:
Faculty/administrative
Civil service
Student employees
Miscellaneous contracts
Nonappropriated funds:
Faculty/administrative
Civil services
Student employees
Miscellaneous contracts
Total Employees

Selected Activity Measures
Fall semester enrollment – Undergraduate
Fall semester enrollment – Graduate
Fall semester enrollment – Professional

 


1,667
979
130

38
469
555
410
86
4,334


15,722
3,008
373

 


1,629
976
167

44
379
573
461
65
4,294


15,428
2,741
361
UNIVERSITY PRESIDENT
During Audit Period: Dr. John G. Peters
Currently: Dr. John G. Peters
 

 

 

 

 

 

 

 

Calculation errors in 16 of 20 loans tested

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

LACK OF CONTROLS OVER PROCESSING REPAYMENTS AND REFUNDS DUE ON GRANTS AND LOANS

The University had inadequate controls over the processing of Title IV refunds and repayments. Specifically, the University did not always accurately determine the amount of refund/repayment owed the federal government when a student who had obtained a federal grant/loan (or both) withdrew from the University prior to a specified date.

During our testing of fall 2001 and spring 2002 refunds/repayments we noted 16 of 20 students sampled had loans which were reduced by an amount greater than the unearned portion of the loan. The discrepancies totaled $642 and occurred during the fall of 2001.

The University personnel noted the number of days used in the calculation was corrected in January 2002, however no corrections were made to refunds that were processed prior to that date.

We recommended the University establish proper controls in the processing of Title IV refunds/repayments. The calendar used to compute the earned portion for each term as well as the refund calculation sheet should be checked by another person for accuracy prior to finalizing the refund process. The University should automate the system for calculating refunds to ensure consistency and accuracy of the computations. (Finding 1, pages 19-20)

University officials concurred with our recommendation and stated that procedures and controls have been implemented.

OTHER FINDINGS

The remaining findings and recommendations were less significant and reportedly are being given attention by

University management. We will review progress toward implementation of our recommendations during our next audit.

University responses were provided by Ms. Kathe Shinham, Associate Vice President, Division of Finance and Facilities.

AUDITORS’ OPINION

Our auditors stated the financial statements of Northern Illinois University as of June 30, 2002, and for the year then ended, are fairly presented in all material respects.

 

____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:TLK:pp

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors for this audit were The Bronner Group.